Whether you are a startup or an established business, finding a warehouse that meets your needs and specifications while meeting your business’s budget is very important, and there are many types of warehousing options available, from private and public, to technologically advance temperature-controlled warehouses, which can be confusing.
Types of warehousing
That’s why in this article we will give you a full insights on the types of warehousing, and how to pick the right one for your business.
Warehousing definition
Warehousing is the process of storing and keeping goods safe in a storage facility until it is time for them to be sold or distributed. Warehouses are not only storage space, they play a key role in the supply chain process, it is where goods are organized and treated with special care, some goods needs to be stored in a specific environment, and that’s why you will find that there are many types of warehouses based on their size, features, technology.
7 types of warehousing
1- Distribution Centers
Distribution centers are huge storage spaces that allow massive quantities of goods in a short amount of time. Used to store the products, which are rapidly produced and distributed to different consumers.
Most manufacturing businesses rely on distribution centers nowadays rather than keeping goods in a warehouse and managing fulfillment themselves. Because most distribution centers offer other complementary services like inventory management, inventory control, and transportation services.
2- Public warehouses
Public warehouses are storage facilities owned by third parties, and used by different small and large businesses for short- or long-term from month to month. Public warehousing is known for being cost-effective, convenient, and adaptable.
3- Private warehouses
A private warehouse is a warehouse owned by distributors, manufacturers, or wholesalers of the goods privately, and is not for public use. These types of warehouses are a better option for e-commerce businesses that need constant storage space, although they can be quite expensive compared to other warehouses.
4- Consolidated warehouses
The consolidated warehouse is a warehouse used to store goods from different manufacturers that are ready to be sent off to the same destination. Where the goods are collected, organized, and packed, and then dropped off in bulk to retailers. It is usually used by startups that don’t have a large amount of goods and don’t need a whole warehouse for their business, so they share these types of warehouses.
5- bonded and Non-Bonded warehouses
Bonded and non-bonded warehouses are warehouses used when goods are shipped across countries and waiting to be cleared by customs, there is a difference between these two warehousing systems:
Bonded warehouse
is the storage where the goods are under the control and security of the customs authority of the country.
Non-bonded warehouse
is privately held, which means that the importer must pay taxes on the goods and ensure they are fully cleared and inspected.
6- Smart warehouses
Smart warehousing is a warehouse that uses technology to avoid any human error. It is the type of warehouse that eliminates the use of manual labor and administration, using E-commerce AI and robots and drones to store, and organize the goods to maintain a high level of productivity and efficiency.
7- Climate-controlled warehouses
A climate-controlled warehouse is a warehouse with special heating and cooling technologies used to store goods that need to be kept in a specific environment to ensure their safety, like pharmaceutical products or other perishable goods that, if not kept at an appropriate cool temperature, will lose their freshness, flavor, and nutritional value.
These types of warehouses are equipped with special devices that can control the temperature and even the humidity of the warehouse climate.
How to pick the perfect warehouse for your goods?
Now that you know the difference between each type of warehouse, you are probably wondering which one is more appropriate for my goods.
First, you need to consider these key factors:
1. The size of the warehouse
The first thing you should consider is the warehouse's capacity and the volume of your products. If you regularly produce a lot of goods, you should think about having a private or public warehouse or even storing in a distribution center, but if you run a small business, consolidated warehouses would be ideal for you.
2. Your goods needs
The second step you should take is to study whether the warehouse layout is appropriate for your goods.
If you have goods that need special care, like perishable products, you might consider going for climate-controlled warehouses that will allow you to store your goods in the temperature and level of humidity it need to survive the shipping journey.
3. The warehouse’s Location
The location of the warehouse is very important whether they are going to be forwarded to another location or distributed to retailers. Finding a warehouse that is close to the next stop in the supply chain is critical.
4. Your company's spending plan.
Last but not least, let's discuss the single most crucial factor in choosing a warehouse: the cost. You must first develop a complete cost plan that accounts for all supply chain costs. Finding a warehouse that matches your budget may be difficult, so figure out how much you can spend on one before making a decision.
A nice and tidy way to end an article is by summarizing the picking the right warehouse guide by telling you that before you go on and pick a warehouse, you should make a full warehousing providers study or you could save yourself the trouble and find a company that can help you have pick the right warehousing service.
And at ACS we provide you with the opportunity to quote and book all the additional services like warehousing and packing online through our online freight platform. Plus we offer professional consulting services to help you pick the right warehouse, the best route for your shipping, and much more.